County councils demand urgent reform to services to stave off funding crisis

The County Councils Network (CCN) has urged the next Government to detail and implement a "bold" package of reform for council services, alongside increased funding, in order to tackle a £2bn funding black hole.

The CCN's call came in its cross-party Manifesto for Counties, which warned that even well-run councils could face financial crises in light of the circumstances.

The document set out the CCN's ideas for creating sustainable county and unitary councils and better local services for residents and warned that the incoming Government would inherit an "extremely precarious" situation with council finances.

The CCN, which represents county councils across England, said that funding alone will not tackle the issue and called for the next Government to detail a package of reform in local services that face the biggest financial and demand pressures.

It described a worsening situation that, without reform or additional funding, could see well-run councils could face financial failure.

The CCN also brought specific attention to the rising costs of children's services, noting that the number of children in care in county areas has increased by 12% since 2019.

It added that the costs of delivering school transport for pupils with special educational needs (SEND) have doubled to £800m in the same timeframe.

The manifesto specifically calls for multi-year and sustainable funding, the introduction of price caps in the children's residential care market, reform for the SEND system, a more sustainable school transport system, and an extension of economic devolution.

In a cross-party County Councils Network statement, the leaders of the organisation's Conservative, Labour, Liberal Democrat and Independent groups, said: "Council services in county areas enhance the lives of 26m people, yet those councils face a funding black hole of £2bn over the next two years. Whoever wins power, the next Government inherits a situation with council finances that are extremely precarious.

"Without extra funding and fundamental reform, highly valued local services could reach breaking point, and even well-run local authorities could struggle to balance the books. The next Government must urgently set out how it will fund councils once in office, while also adopting our bold and brave agenda for reform."

The leaders said the council services under pressure will "only become sustainable in the future if they are coupled with root and branch reform".

They added: "Councils want to be key partners in [the reform] process: setting out solutions and then leading on implementing reform across a host of areas, such as children's services, SEND provision, and school transport.

"With the public finances tight and non-protected government departments potentially facing a real-terms reduction, it is vital that all political parties focus on securing long-term growth."

Adam Carey